Question: I am 35, currently started a new business after leaving a high profile job in media sector. During these 10 years i have invested money on mutual funds and stock markets currently and also made some provision for my retirement. I wanted to know is there any ways to assure returns from my retirement investment.
To ensure guaranteed income retirees who look forward to invest in shares need to focus on ones that offer reliable dividends and which have a good chance of appreciation in the future. The cream of the technology sector assures this in ample measure. But how can these shares be safe investments for the retired? It is because these sectors aren’t so dependent upon debt issuance,
Since the tech boom began in the late 90s, there have been many companies that have shared characteristics like high return on equity, low levels of debt, a global reach, and strong free cash-flows. Investing in stocks of these companies means less risk as they won’t sink during trying times. Besides, most of these companies no longer reinvest their earnings in company growth. They are now more careful in channelizing profits back to their shareholders.
Glances at the 5 largest holdings of the 79 total that make up Technology Dividend Index Fund TDIV are roughly 40% of the fund. These include Cisco, IBM, Microsoft, Intel, and Apple. While the present SEC yield stands at 2.8%, in the year ahead the yield figure stands at roughly 3.7%, to boost prospects of healthy earnings.
TDIV is presently outperforming the Nasdaq 100 Index by 0.6% after having underperformed the Standard & Poor’s 500 Index SPX -by nearly 2%. Furthermore TDIV didn’t sink like high-yielding ETFs underwent during the recent selloff, thereby strengthening the conviction of interest rate insulation.
However it needs to be borne in mind that purchases made in the midst of a broad market selloff can truly be fruitful. For those investors who wish to break out of traditional way of investing in equities, TDIV presents a great opportunity. With TDIV investors can shift their focus on areas that could do well in even the most fluctuating interest rate conditions.